How does Carvel draft payments for Comprehensive Support Fees from the franchisee's account?

According to Carvel's 2025 Franchise Disclosure Document, Comprehensive Support Fees are collected via Electronic Funds Transfer (EFT). Carvel will draft payments from the franchisee's Designated Bank Account, which is the account already on file with Carvel for other EFT payments. This drafting occurs once per month, on the same day that royalties and other fees are drafted under the Franchise Agreement. These payments will start on the Payment Date of the first full month following the store's opening.

It is the franchisee's responsibility to ensure that sufficient funds are available in the Designated Bank Account to cover the Comprehensive Support Fees, in addition to any other amounts drafted by EFT under the Franchise Agreement. If there are insufficient funds, Carvel has the right to charge the franchisee for any return costs charged by their bank, as well as an administrative fee to cover the costs of addressing the nonpayment. This administrative fee is in addition to any interest on the amount due.

If a Carvel store is temporarily closed and the closure is approved by Carvel, payments of Comprehensive Support Fees will be suspended. The suspension starts on the Payment Date of the first full month following the closure date, and payments will be reinstated on the Payment Date of the first full month following the end of the closure. However, Carvel reserves the right to reinstate payments during the closure if the franchisee requests and Carvel provides Support Services during that time.

Carvel may change credit or payment terms at any time if, in their opinion, the franchisee's financial condition, payment record, or relationship with Carvel warrants it. Time is of the essence for all payment obligations. Failure to pay Service Fees when due constitutes a default under the Franchise Agreement, which, if not cured within ten days of written notice, can lead to further action by Carvel.